Firms choose strategies based on their attributes and industry conditions; therefore, strategy choice is endogenous self-selected. Empirical models that do not account for this regress performance measures variables are potentially misspecified conclusions incorrect. I highlight how self-selection hard-to-measure or unobservable characteristics can bias estimates recommend an econometric technique has been developed to effect. Although concern applies a wide range of questions, demonstrate...

An overlooked aspect of agglomeration economies, which are positive externalities that stem from the geographic clustering industry, is firms contribute to externality in addition benefiting externality. This insight suggests if heterogeneous they will differ net benefits receive agglomerating. We argue with best technologies, human capital, training programs, suppliers, or distributors gain little, yet competitively suffer when their employees, and access supporting industries spill over...

Empirical findings across many nations show that exporters have superior productivity compared to nonexporters and this relationship is driven by productive firms becoming exporters. The conclusion drawn from these studies there little learning exporting. We, however, assess if are ex post benefits accrue exporting examining innovation outcomes. We argue can often access diverse knowledge inputs not available in the domestic market, spill back focal firm, such foster increased innovation....

Internationalizing research and development is often advocated as a strategy for fostering the of technological capabilities. Although firms conduct international R&D to tap into knowledge bases that reside in foreign countries, we argue order benefit from investments must already possess capabilities underlying or complementary technologies. We examine expansion activities, capabilities, patent output 65 Japanese pharmaceutical 1980 1991. find only when they existing In addition refining...

Abstract By highlighting conditions under which viable interorganizational relationships do not materialize, we explore the limitations of knowledge acquisition. In empirical context corporate venture capital (CVC), analyze a sample 1,646 start‐up‐stage ventures that received funding during 1990s. Under regime weak intellectual property protection (IPP), an entrepreneur‐CVC investment relationship is less likely to form when entrepreneurial invention targets same industry as products....

Research summary : A replication study assesses whether the results of a particular prior can be reproduced, including in new contexts with different data. Replication studies are critical for building cumulative body research knowledge. This article discusses and provides typology types replications, compares replications other approaches to cumulating knowledge, guidelines toward producing high‐quality studies. The articles this S pecial I ssue provide examples strategic management....

We argue that foreign firms operating in a host country generate information spillovers have potential value for later direct investment. test two predictions. First, we expect investments by with experience to be more likely survive than made first-time entrants. Second, will the greater presence target industry at time of investment, subject contingencies. The first contingency is relationship weak or nonexistent among no country, because these difficulty evaluating and taking advantage...

Due to the nature of data employed and concepts tested, standard tests for mediating variables in management research can often violate an assumption on which these are built. As a result, estimates from lack desirable statistical properties lead incorrect conclusions. This article highlights when will assumptions underlying variables, suggests alternative strategy that provides better estimates, discusses theoretical empirical demands strategy, demonstrates magnitude improve by using...

Abstract We show that successful foreign market entry is related to the extent of presence in an industry at time entry. Survival 31 Canadian‐based businesses entered 24 U.S. medical sector markets between 1968 and 1989 tended be somewhat longer product which foreign‐based held a moderate share when Canadian than low high markets. The result controls several other business‐level factors, including concentration, year, corporate size, diversification, mode, service status.

We examine the interrelationship between export and domestic sales. Our expectation is that they are simultaneously determined, as such should not be examined in isolation. also investigate how firm factors—such R & D advertising investments—and external market growth exchange rate changes—impact Using a non-recursive system of equations, we test our arguments on representative sample Spanish manufacturing firms 1990 1997. find significant interrelationships sales with striking differences...

Abstract We investigate the effects of increasing and decreasing international presence on market share survival in American medical diagnostic imaging equipment industry. Imaging manufacturers possessing operations tend to achieve superior longer survival, but we find that attempting become an player is risky. Both have negative associations with while decreased internationalization associated share. Brief case studies suggest ingredients for success may include preparedness, focused...

This paper examines the conditions under which firms make long horizon investments (i.e., that take a period of time to pay off). We predict are constrained from making when short-term performance is poor—and this effect especially pronounced for young firms. Moreover, we argue managers hold high levels exercisable stock options, their less likely long-term investments. However, more pursue managerial options not yet exercisable. Based on analysis made by cable television operators...

Abstract Previous research has found that foreign‐owned establishments often lack specific capabilities needed to respond local business conditions and are held a higher standard by stakeholders. These compensate, however, possessing offsetting such as technological excellence. In this article, we investigate how these conflicting forces shape the environmental conduct of facilities. Using data from Environmental Protection Agency, find generate more waste yet manage than U.S.‐owned...

Abstract Many strategic investments require firms to make upfront outlays generate profits at a later date. When have limited access external capital, they rely on internally generated funds for these investments. In this case, their are constrained by cash flow. I predict that geographically diversifying sales (i.e., exporting), can relax constraint because exporting signals more stable expected flows and firm quality, which increase capital providers' willingness fund Examining...

We study competition as an impetus for firms to reposition—to abandon their current positioning strategy and adopt a new one. predict that strong firm moves closer, erodes the profitability of situated prompts them reposition. expect this effect is pronounced greater difference in competitive strength. However, we countervailing forces exist such viability alternative positions opportunity cost abandoning position mitigate effect. Evidence from natural experiment China's satellite television...

Abstract We refine internationalization theory by hypothesizing that international expansion is a discontinuous process characterized an initial ‘big step.’ Firms have to build infrastructure (e.g., architecture, management systems, and mind‐set) support operations the first time they venture abroad, subsequent are able leverage this infrastructure. Thus, we hypothesize by: (1) firms taking long period make their investment; (2) shorter but constant periods for investments. examine...

Fixed-effect regression models use within-firm variation to identify coefficient estimates, which is advantageous for mitigating certain endogeneity concerns and ruling out spurious relationships. I demonstrate that fixed-effect with interaction terms (and by extension quadratic or higher-degree terms) confound between-firm in identifying estimates. Thus, these specifications estimates lack a desirable property of standard substantiate this concern using simulations an empirical example....

Research Summary : We investigate the extent to which firms rely on supranational institutional safeguards versus their non‐market capabilities offset risks of investing abroad. argue that with are insensitive when choosing location international investments. show agreements between an investor's home and host nation, operationalized as bilateral investment treaties (BITs), increase likelihood investment, but there is substantial firm heterogeneity respect this relationship. Firms various...

Acquisitions can dramatically reshape interorganizational networks by combining previously separate nodes and allowing the acquirer to inherit target’s ties, potentially creating network synergy. Network synergy is extent which an acquirer’s a through node collapse results in more favorable structural position for combined firm as gains control of existing ties. We hypothesize that likelihood selecting target increases when expected greater. Using data from biotechnology industry...

I highlight why taking causal identification seriously is important for the study of strategy and organizations. Nevertheless, nature questions that are central to our field data we have answer these complicates doing so. Because this, suggest explicitly consider as an issue can be addressed only through a cumulative body empirical research. outline current research norms practices impede adopting this approach recommend set actions help overcome practices.

Integrating merged businesses to realize synergies can adversely affect the distribution of potential outcomes through two mechanisms: contagion effect and capacity effect. I describe these effects, highlight when they will be pronounced, discuss their importance. My arguments demonstrate that an inherent element synergy-based mergers acquisitions is actions facilitate synergy capture amplify threats inhibit firms' ability respond favorable conditions in business environment.